3 Minute Gold News – Jim Rickards – CNBC – July 5, 2016

3 Minute Gold News

A synopsis of an interview with Jim Rickards, New York Times bestselling author of The Death of Money,Currency Wars, and the newly released bestseller The New Case for Gold, by Pauline Chiou at CNBC.

Jim is the editor of Strategic Intelligence, Chief Global Strategist for West Shore Funds, former general counsel for Long Term Capital Management, and a consultant to the U.S. Intelligence community and U.S. Department of Defense.

by: Elaine Diane Taylor

Topics:

If you see a weaker U.S. dollar then it’s a higher dollar price for gold, because gold is a form of money and the inverse of the dollar.

Yellen has to weaken the dollar because she needs to import inflation. The Fed is nowhere near their inflation targets.

She’s going to put off interest rate hikes indefinitely in order to try to get inflation.

The Fed move may even be to cut interest rates sometime next year.

The weaker dollar, which Yellen wants and needs, means a higher price for gold.

Silver tags along with gold, and there’s no way that gold is going to rise significantly without silver rising also.

THE FED

The Fed is going to ease in order to get inflation and they’ll do it in the form of Forward Guidance. (They’ll indicate they won’t raise interest rates and hope this will guide and influence the market.)

This means there will be a weaker dollar, a weaker euro and a stronger yen.

The Fed’s credibility is in shreds. They’ve been flip-flopping. They lifted off in December 2015 and said they expected 3-4 rate hikes over the next two years.

Now that’s down to zero.

In terms of expectations they’re not meeting their inflation goals, and their forecasting has been wrong by orders of magnitude for eight years in a row.

The loss of credibility in the Fed is becoming more widespread and it’s one of the reasons that gold is going up.

People are losing confidence in Central Bank money.

People all around the world are losing confidence in Central Bank money and turning to gold, not as a commodity or an investment, but as a form of money.

As far as interest rate hikes go they won’t raise rates before the election, and a hike in December isn’t likely.

If they raise interest rates before the election it’s probably enough to put the U.S. into a recession. That would elect Donald Trump.

Yellen and most of the members of the Fed board are Democrats.

Trump as President the last thing they want so it’s another reason why interest rate hikes will be off the table.

The Greek bank holiday and long lines to get a few euros for the day. Debt deals behind closed doors. The media telling us what opinions to have. China building islands in the South China Sea and claiming all the international waves. More dealing to come. More standing in line for those who owe. Who owes? There’s a long line of nations in debt and this is far from done.

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Preparing for the Fall live boutique album available on iTunes — featuring Wag the Dog, Black Swan Dive, American Pie and Gods of the Copybook Headings.

The copybooks of the early 1900s gave us all the wisdom we need. The sayings that were copied are the truths, the gods, of our world. All the empires who followed the gods of the marketplace instead have fallen, and there’s terror and slaughter when the gods of the copybook headings return. The lyrics are by Rudyard Kipling. One of my gurus.

See the bankers wave their Wall Street wands and conjure piles of paper green. Naked short selling is like betting that your neighbour’s house will burn down. But in this scenario it happens to burn down. If the bankers win then we lose the whole world as we know it. I wrote this in 2009, with a lyric “A little grease (Greece) is floating out to sea, and little pigs (Portugal, Italy, Greece and Spain) are bobbing up and down, they’ll send a storm and we’ll see, when the tide goes out who’s naked on the beach“, and it’s coming on now. The world is changing as we know it.

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Nothing on this site is intended as individual investment advice. We’re all watching which way the wind is blowing.